Fear the Austrian Economists, Part I

Last week I noted the attack on Austrian economics at The Street, and on the Mises Institute specifically. It turns out the article I noted was the second article in a week warning readers to not look behind the curtain, and to ignore the killjoys of the Austrian School who refuse to break out the champagne to commemorate the Fed’s final victory of the business cycle. This article from Jan 13 doesn’t cite sources, so I’m not sure where the author gets his information to make this claim:

The Austrians celebrated monetarism as “conservative” in the 1960s, when “Chicago School” leader Milton Friedman used it to argue for tightening the money supply. Now, with outgoing Federal Reserve chairman Ben Bernanke having used the same theory against the “Great Recession,” the policy is derided as “liberal.”

Although the author is part right by noting that monetarism provided at least some of the justification for the wild money printing of the Bernanke era.

Comments

  1. Having first been exposed to Rothbard this week in 1973, I submit that we need to accept the sad fact that no non-Austrian in the galaxy understands basic Austrian concepts or analysis. Or wants to.

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